Yahoo Finance Are Computer and Technology Stocks Lagging DigitalOcean (DOCN) This Year?
The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has DigitalOcean Holdings, Inc. (DOCN) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
DigitalOcean Holdings, Inc. is a member of our Computer and Technology group, which includes 643 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. DigitalOcean Holdings, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DOCN's full-year earnings has moved 713.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, DOCN has returned 42.8% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 18.7% on average. As we can see, DigitalOcean Holdings, Inc. is performing better than its sector in the calendar year.
Another Computer and Technology stock, which has outperformed the sector so far this year, is Fastly (FSLY). The stock has returned 106.2% year-to-date.
The consensus estimate for Fastly's current year EPS has increased 14.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, DigitalOcean Holdings, Inc. belongs to the Internet - Software industry, a group that includes 146 individual stocks and currently sits at #50 in the Zacks Industry Rank. On average, stocks in this group have gained 25.9% this year, meaning that DOCN is performing better in terms of year-to-date returns. Fastly is also part of the same industry.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to DigitalOcean Holdings, Inc. and Fastly as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
Fastly, Inc. (FSLY) : Free Stock Analysis Report
